Exam 17: Managing Global Human Resources

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Differences in economic systems also translate into differences in human resource management policies.For instance,some countries in the Euro zone tend to put more restrictions on the number of hours an employee can legally work each week.Differences in labor costs are also substantial.Hourly compensation costs for production workers vary as well.Several European countries,including the United Kingdom and Germany,require substantial severance pay to departing employees,usually equal to at least one years' service in Germany.Workers in France can expect 2 1/2 days of paid holiday per full month of service per year,and Germans get about 18 vacation days per year.The U.S.practice of employment at will does not exist in Europe,where firing or laying off workers is usually expensive.And in many European countries,work councils replace the worker-management mediations typical in U.S.firms.Codetermination is the rule in Germany and several other countries.Unions in Europe are influential and labor-management bargaining and relations reflect this fact.In general,four issues characterize European labor relations: centralization,employer organization,union recognition,and content and scope of bargaining.